Hayleys 9-month turnover up 37%YoY to Rs. 112.3 bn
View(s):Strong top line performances across the Hayleys Group and the addition of recent strategic acquisitions resulted in a 37 per cent YoY increase in turnover to Rs. 112.3 billion during the nine months to end December 2017. Gross profit rose by 29 per cent YoY to Rs. 24 billion, the company said in a media release.
Increases in raw material prices and adverse weather conditions impacted the operating profits of the group’s manufacturing and agriculture sectors while the higher borrowing costs resulting from the group’s progressive investment strategy coupled with higher interest rates prevalent during the period in review contracted the group’s Profit Before Tax (PBT) to Rs. 2.94 billion (from Rs 4 billion in the same 2016 period). As a result, post-tax profit fell sharply by 43 per cent to Rs. 1. 5 billion.
“It has been a challenging nine months for the Hayleys Group despite the remarkable growth and expansion displayed in the top line performances of all of our diverse business segments. Our continued growth drive, which we have strategically embarked upon, has reflected in an increase in the finance cost reported for the period. Although the higher finance costs have had a negative impact on group profits during the period, measures are already being implemented to realign the financial position in order to bolster profitability and recover momentum moving into the final quarter of the financial year, which is traditionally the strongest performing quarter for the group. Coupled with exponential gains from the investments entered into over the past year, we anticipate a strong growth outlook for the group moving forward,” said Hayleys PLC Chairman and Chief Executive, Mohan Pandithage.
The media release said the group’s consumer products segment – which also includes the recently acquired business of Singer (Sri Lanka) PLC – recorded a significant improvement in turnover, which stood at Rs. 19.9 billion as compared with a previous Rs.3.86 billion while profits in the segment rose from Rs. 90.18 million up to Rs. 965.7 million.
The group’s hand protection segment also recorded a strong top line performance, increasing 11 per cent YoY to Rs. 12.1 billion. However, profitability was hampered by steep increases in global latex prices, which is the primary raw material in the manufacture of the segment’s wide range of specialised rubber gloves for sale in export markets across the globe.